Bethlehem Area plans more trimming on 2013-14 budget

Bethlehem Area taxes would go up 3.8 percent next year. District plans to lower rate.

February 12, 2013|By Margie Peterson, Special to The Morning Call

The Bethlehem Area School Board on Monday approved a 2013-14 preliminary budget with a nearly $8.2 million deficit that it plans to whittle down in time for final passage in June.

Superintendent Joseph Roy said the district is looking at a maximum tax increase of about 3.8 percent but will look for savings and additional revenue that would lower any tax hike.

The preliminary $224.6 million budget does not include any staff cuts or new programs. It passed 6-2 with School Directors Basilio Bonilla Jr. and Irene Follweiler voting no and Sudantha Vidanage arriving too late for the vote.

Under a 3.8 percent tax increase, the millage rate in Lehigh County would go to 15.4 mills. That would mean a tax hike of $92 for a property assessed at the full market rate of $154,000.

For Northampton County residents, the millage rate would go up to 48.9 mills. That would raise taxes about $139 for a property assessed at half the market rate of $77,000.

Before the vote, Finance Committee Chairman Eugene McKeon said he planned to vote yes so as not to hamstring the district, but it doesn't mean he'll vote for a final budget with the tax increase.

"This is the time we really have to bear in mind the proposed city tax increase as we factor in our tax increase," McKeon said.

Employee health care and the district's pension obligations are among the biggest "cost drivers," according to the district.

Whatever else the district finds to cut, some school directors sounded supportive of raising the wage rate for substitutes who fill in for jobs other than teaching.

Human Resources Director Russell Giordano reported he had surveyed all the school districts in Intermediate Unit 20 and 21 and found that BASD is rock bottom when it comes to pay for substitutes for the positions of teacher assistants, custodians, secretaries and security officers.

"I think this is something that is long overdue," Director Bill Burkhardt said.

Giordano recommended the district pay $10 an hour for subs for all four positions, which he said should make it easier for the district to find such substitutes.

The yearly cost increase to the district would be about $60,000.

A bit of good news for district finances is the Colonial Intermediate Unit 20 isn't looking for an increase in funding from member districts to pay for its 2013-14 budget, according to IU Executive Director Charlene Brennan.

Thirteen school districts contribute about $520,440 to the IU's $3 million budget. Bethlehem pays the most — $99,678 overall. Last year its share funded services for 928 Bethlehem students and 850 hours of professional development for district staff.